If Cinnaholic assigns its rights, is it required to remain in the Cinnaholic business?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor assigns its rights in this Agreement, nothing in this Agreement shall be deemed to require Franchisor to remain in the CINNAHOLIC business or to offer or sell any products or services to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, if Cinnaholic assigns its rights within the franchise agreement, it is not obligated to remain in the Cinnaholic business or to continue offering or selling any products or services to the franchisee. This means that Cinnaholic has the option to transfer its obligations and rights to another party without needing to maintain its involvement in the franchise system.
This clause provides Cinnaholic with significant flexibility in structuring its business operations and potential exit strategies. For a prospective franchisee, this could mean dealing with a completely new franchisor at some point during the term of their franchise agreement. The new franchisor might have different business philosophies, operational methods, or support systems, which could impact the franchisee's business.
While Cinnaholic is permitted to assign the agreement, franchisees should consider the potential implications of such a change and ensure they are comfortable with the possibility of a new franchisor taking over. It would be prudent for a potential franchisee to inquire about Cinnaholic's long-term plans and the likelihood of an assignment of the franchise agreement to fully understand the stability and future direction of the franchise system.